If Income Increases, Then

question 33

Multiple Choice

If income increases, then:

• A) there is a change in the demand for beef and a change in the demand for chicken
• B) there is a change in the demand for beef and a change in quantity demanded of chicken
• C) there is a change in quantity demanded of beef and a change in the demand for chicken
• D) there is a change in the quantity demanded for beef and a change in the quantity demanded of chicken

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Definitions:

Administrative Expenses

Overhead expenses not directly attributable to specific business operations, such as salaries of senior executives.

Periodic Inventory System

A method of inventory valuation that requires a physical count to determine the end-of-period inventory and cost of goods sold.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the financial health and performance of a business.

Freight In

The cost associated with transporting goods from suppliers to the buyer, which is added to the cost of inventory.